December 2023 Update
As promised, we are writing to update you on several key milestones that have been achieved in the Renew ‘22 project since we last communicated in October.
Phase I (Youth & Administration) is complete!
Grand Opening January 11
We are proud to report that our brand-new Kids Centre has come in 14% under budget thanks to active project management. Our mini-Members will be able to enjoy programs (Hollyville and Mini Scholars) in their state-of-the-art space as of January 8, 2024. All Members are invited to tour the new Kids Centre at the Grand Opening party on Thursday, January 11th from 4-6PM. To preview the incredible transformation of this space, please click here.
Phase II (Food & Beverage) it’s go time!
As mentioned in our October update, the Renew ’22 Phase II project went to competitive tender as planned in November. We had good interest from the market and can confirm that the tendering process was conducted in a competitive, rigorous and transparent manner.
Over the last few weeks, the project team has been carefully reviewing and clarifying the bids received after the tender closed. As expected, market conditions continue to put upward pressure on construction budgets and the final total cost for Renew ‘22 is now forecast to be $24.8M, or 6.4% above budget that was approved by Members 18 months ago. For conservatism, a healthy construction contingency of $1.5M remains within this total cost.
Leading up to and during the tendering process, the Board considered a number of approaches to address a potential increase to the Renew ‘22 budget. The following options were carefully weighed:
1) Descoping a key project element like the Bistro and reducing finish quality,
2) Implementing a Member capital assessment specifically for the Renew '22 project,
3) Pausing the project to conduct a Member vote to approve an additional $1.5M, or
4) Reallocating other planned annual capital spending.
With Member impact and satisfaction top of mind, both in the short and long-term, the Board decided to use their discretion, as outlined in the Bylaws, to reallocate up to $1.5M of capital funds originally planned for Fiscal ‘25 to Renew ‘22 (Option 4). By doing so, the Renew '22 budget remains at the original approved amount of $23.3M. The reallocated $1.5M will fund furniture and some kitchen equipment.
The Board determined this option was critical to maintain the project schedule, to avoid escalation costs, to protect the integrity of the project (scope and quality) and to follow through with the Club's commitment to complete this long-overdue investment.
Our strong cash position combined with higher than anticipated entrance fee revenue has positively impacted the Renew ‘22 financing model, giving both the Finance Committee and Board the confidence needed to unanimously endorse this reallocation of capital spending. This will not impact the up-to-$20M of borrowing that Members approved in June 2022, and as promised, there is no intent for Members to be assessed a capital fee for Renew '22. It is also important to note that the Board will still have sufficient ability to adequately fund recurring capital expenditures and longer-term continuous improvement objectives.
In conclusion, on the recommendations of both the Renew ‘22 and Finance Committees, the Board of Directors has reviewed and unanimously endorsed the request for up to $1.5M be reallocated from Renew '22 to the annual capital budget. As we did for Phase I, Hollyburn’s Board and Management will continue to actively manage the budget throughout Phase II construction, with the hope that the final project costs will come in under the forecast $24.8 million given the healthy contingency remaining.
Construction will begin in early January 2024 as scheduled so that all Members may continue to look forward to celebrating on our new patio in late Spring 2025. Later this week, you will receive further communication regarding the upcoming detours to assist Members navigate construction closures as we prepare to begin Phase II and we thank Members for your continued understanding and adaptability throughout Renew ‘22.